Today’s Stock Market: What You Need to Know Going Into Feb. 17 Trading

Today’s stock market is in focus as traders get ready to open trade on Feb. 17. Investors are watching how major indices like the Dow Jones

Industrial Average and S&P 500 are going to react to news from two Federal Reserve officials who suggested they were considering a 50 basis point rate cut.

Additionally, Bitcoin was trading below the 24000-level, adding to the volatility of the day. In this blog post, we’ll be discussing stocks in the news, big brokerage calls of the day, complete trade setup and much more, so that investors can make the best decision for their portfolio.

The S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%

The markets have been volatile since the start of trading on February 17, with the S&P 500 Index losing 1.4% and the Nasdaq 100 falling 1.9%. This follows a drop in the U.S. benchmarks after two Federal Reserve officials said that they were considering a 50 basis point cut to their benchmark interest rate.

Asian markets also followed suit, with most major indices dropping throughout the day. India’s benchmark stock indices ended firm for the third day in a row, however, as investors are starting to look beyond the uncertainty in the U.S. markets.

Reliance Industries, State Bank of India and Kotak Mahindra Bank gained 1%, 0.2% and 0.5%, respectively. On the other hand, Hindustan Unilever Ltd fell 0.3%, while Tech Mahindra Ltd slipped 0.5%.

Elsewhere in Asia, Japan’s Nikkei 225 closed 0.6% lower at 22,542 points; while South Korea’s Kospi ended 0.2% lower at 2,227 points. In China, Shanghai Composite finished 0.7% lower at 3,019 points; while Hong Kong’s Hang Seng dropped 1.3%.

European stocks opened lower following the negative sentiment from Asia Pacific bourses with FTSE100 down 0.1%, DAX 0.3%, CAC 40 0.3%, IBEX 35 0.2%, FTSE MIB 0.1%, and Stoxx 600 down 0.2%.

Bitcoin was trading below 24000-level

Cryptocurrencies had a difficult day, as Bitcoin’s prices fell on Feb. 17. The popular cryptocurrency was trading below the 24000-level mark, which is a sharp decline from its previous peak of around 45000.

This downward movement was a direct result of the S&P 500 Index losing 1.4% and the Nasdaq 100 sinking 1.9%, following comments by two Federal Reserve officials that they were considering 50 basis points rate hikes.

India’s benchmark stock indices ended firm for the third day in a row, providing some respite to investors who are worried about the volatility in global markets.

On Tuesday, the BSE Sensex gained 0.7%, while Nifty closed up 0.8%. Sectoral indices such as IT, pharma, auto, FMCG and metal ended higher, while banking stocks lost ground.

Among individual stocks, TCS led gains after reports that it plans to raise wages by 8%. Meanwhile, HDFC Bank was the biggest loser after announcing it would cut interest rates on savings accounts.

Overall, investors remain cautious despite India’s stronger performance compared with other Asian markets following the U.S. benchmarks’ losses.

With increasing concerns about rising inflation, central banks around the world are likely to keep an eye out for any signs of overheating in their respective economies.

India’s benchmark stock indices ended firm for the third day in a row

Despite the U.S. benchmarks dropping, India’s stock market was able to buck the trend and close in positive territory for the third straight day. The Nifty 50 ended 0.4% higher at 14,551.45,

while the Sensex gained 0.6% to 48,677.46. This is a testament to the resilience of India’s stock markets and investors’ confidence despite the overall bearish sentiment in the global markets.

Market participants attributed the firm performance to strong buying in banking, financials and IT stocks, while there was some profit booking in automobile stocks and pharmaceuticals. Other Asian indices also saw losses following the decline in U.S. equities.

Japan’s Nikkei 225 slid 0.9%, South Korea’s Kospi declined 1%, Hong Kong’s Hang Seng index dropped 1%, while China’s Shanghai Composite index fell 0.2%.

Meanwhile, European indices opened slightly lower on Tuesday as traders kept an eye on the developments related to stimulus talks in Washington.

Investors also digested a few macroeconomic data points from the euro zone including Germany’s unemployment numbers and inflation figures from France. The S&P 500 Index lost 1.4% and the Nasdaq 100 sank 1.9%.

In addition, oil prices were marginally lower with US crude futures declining 0.2% to $60.50 per barrel, while Brent crude slipped 0.1% to $63.65 per barrel. Gold prices were also modestly lower with spot gold trading down 0.2% at $1,826 an ounce.

On the other hand, US Treasury yields rose following comments by Federal Reserve officials who noted that they are considering allowing a brief period of above-target inflation to make up for years of low price growth.

The 10-year Treasury yield rose 2 basis points to 1.17%, while 30-year Treasury yield increased by 2 basis points to 2.02%. Looking ahead to today’s session, investors will be closely monitoring the minutes from the Federal Reserve’s meeting last month, due later today.

Additionally, Wall Street will be tracking news surrounding further coronavirus relief package negotiations between Democrats and Republicans. Finally, earnings season will continue to draw attention this week with reports due out from several big names including Apple Inc (AAPL) and Microsoft Corporation (MSFT).

the U.S. benchmarks after comments by two Federal Reserve officials

On Tuesday, February 16th, the U.S. stock market saw losses after comments by two Federal Reserve officials. The S&P 500 Index lost 1.4%, while the Nasdaq 100 sank 1.9%. Meanwhile, India’s benchmark stock indices ended firm for the third day in a row.

The drop was triggered by remarks from Federal Reserve Bank of Chicago president Charles Evans and Federal Reserve Bank of Atlanta president Raphael Bostic.

They indicated they were considering a 50 basis point rate cut to counter the coronavirus impact on the global economy.

The comments sent Wall Street into a tailspin, with all 11 major S&P 500 sectors closing down for the day. The financial sector dropped 3.3% and tech stocks dropped 2.2%.

The overall market lost its momentum following the Fed’s comments, though some analysts believe it could lead to a much-needed rate cut that would help stimulate economic growth.

It remains to be seen how the markets will react when the Fed meets next week. In the meantime, investors should remain cautious and carefully consider their strategies before entering the market.

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